April 9, 1999

The Honorable Raymond G. Sanchez and

Members of the House of Representatives

Executive-Legislative Building

Santa Fe, New Mexico 87503

Honorable Speaker and Members of the House:

I have this day VETOED and am returning HOUSE BILL 832, with certificate

enacted by the Forty-Fourth Legislature, First Session, 1999.

This legislation would mandate the exclusion of treatment foster care from the Medicaid Managed Care Program Salud. I have vetoed this bill because the result would be the fragmentation of a system designed to serve the children with formidable problems. Enactment of this law would represent a step back toward a fee for service model in an area that requires a higher level of coordination among providers. Additionally, under current Medicaid Managed Care policy, children who are in treatment at the time of enrollment are exempted from managed care until and if they are discharged from the service.

Sincerely,

Gary E. Johnson

Governor